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Is Tencent's Rapid Growth Starting to Plateau?
Article

Is Tencent's Rapid Growth Starting to Plateau?

Huxiu, 2019

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Editorial Rating

7

Qualities

  • Analytical
  • Overview
  • Concrete Examples

Recommendation

Numerous media outlets have credited Tencent as one of the world’s most innovative companies. The company’s development awes observers and serves as a case study for internet entrepeneurs in China. However, can Tencent keep up this pace of development? In this article, Fang Jianchun, writing for financial news platform HKCJ2016, addresses the crucial question: Is Tencent’s extraordinary growth starting to level off? He thoroughly examines Tencent’s 2018 fianancial performance and analyzes the company’s business ventures section by section. This well-organized report will be helpful for anyone interested in Tencent and who wants to learn more about China’s gaming and advertising market. 

Take-Aways

  • Tencent’s annual report describes a decent performance in 2018 with a dip in the last quarter.
  • Tencent’s gaming business is experiencing resistance on multiple fronts, such as stricter regulation from the government, diminishing profits from PC games, and increased competition in mobile games.
  • Tencent’s advertising division is doing moderately well, though Tencent still keeps WeChat’s profit potential on a tight leash.

About the Author

Fang Jianchun is a writer for the WeChat account HKCJ2016, a leading Chinese financial news platform that focuses on presenting and interpreting even subtle changes in China’s policies and markets.